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MANAGERIAL EMPLOYEES ARE NOT ENTITLED TO HOLIDAY PAY

The Labor Code provisions on Holiday Pay (found in Chapter III, Title III Book
3), both as to the Regular Holiday and Special Non-Working Holiday, DO NOT
apply to managerial employees. Article 82 of the Labor Code states:

The provisions of this Title shall


apply to employees in all
establishments and undertakings
whether for profit or not, but not to
government employees, managerial
employees, field personnel,
members of the family of the
employer who are dependent on him
for support, domestic helpers,
persons in the personal service of
another, and workers who are paid
by results as determined by the
Secretary of Labor in appropriate
regulations.

Rank-and-file employees are not within the exclusion thus, they are entitled to
Holiday Pay, the rules therefor are stated below.

RULES ON REGULAR HOLIDAY PAY:

If it is employees regular workday:


UNWORKED 100%
WORKED 200%
Overtime Plus 30% of hourly rate on
said day
If it is an employees rest day:
UNWORKED 100%
WORKED Plus 30% of the 200%
Overtime Plus 30% of hourly rate on
said day

RULES ON SPECIAL DAYS (SPECIAL NON-WORKING HOLIDAY):


(Memorandum Circular No. 01 Series of 2004);
Omnibus Rules Implementing the Labor Code

UNWORKED No pay UNLESS there is a


favorable company policy,
practice or CBA
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WORKED Plus 30% of the daily rate of


100%
OVERTIME: Plus 30% of the
hourly rate on said day
If it falls under the employees Plus 50% of the daily rate of
rest day and WORKED 100%
OVERTIME: Plus 30% of the
hourly rate on said day

HOURS WORK PERMITTED BY EMPLOYER on SPECIAL NON-WORKING


HOLIDAYS

The employer has the authority to allow or disallow work to be performed by


the employee on regular holidays or on special non-working holidays. Article
84 of the Labor and the Omnibus Rules Implementing the Labor Code states
that hours work include:

a) All time during which an employee


is required to be on duty or to be at a
prescribed workplace;

b) All the time during which an


employee is suffered or permitted to
work.

Since the employer has the authority to require or permit work to be done on
holidays, the company policy on Special Non-Working Holiday- that work to
be rendered on special no-working holidays shall be pre-approved by the
Medical Director or Administrator- is fair and in accordance with the Labor
Code.

In work performed on Special Non-Working, the daily wage rate should be


applied (see Rules on Special Non-Working Holiday stated above). However,
if the employee does not render complete whole day work on such day, the
hourly rates may be justified, provided it is fair and reasonable, or if it is
accordance with company practice.

SPECIAL NON-WORKING DAY FOR MONTHLY PAID AND DAILY PAID


(RANK-AND-FILE) EMPLOYEES:

Monthly-paid employees are those who are paid every day of the month,
including unworked rest days, special days, and regular holidays. Daily-paid
employees are those who are paid on the days they actually worked and on
unworked regular holidays.

In Special Non-Working Days, NO WORK NO PAY principle applies. For


daily paid employees, the pay for work performed on Special Non-Working
Days can be easily determined on the basis of the NO WORK-NO PAY
principle and the rules for Special Non-Working Days above-stated. For
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monthly paid employees, there is a need to determine whether pay for work
performed on Special Non-Working Days is already included or not.

An illustration for such computation is provided in Handbook on Workers


Statutory Monetary Benefits (page 12-14), as follows:

E. Computation of the Estimated Equivalent Monthly


Rate (EEMR) of Monthly-Paid and Daily-Paid Employees

For monthly-paid employees:


Factor 365 days in a year is used in determining the
equivalent annual and monthly salary of monthly-paid
employees. To compute their Estimated Equivalent
Monthly Rate (EEMR), the procedure is as follows:

Applicable Daily Rate x 365 = EEMR 12

where 365 days/year = 299 ordinary working days


52 rest days
11 regular holidays
3 special days ____
365 Total equivalent no. of days in a year

For daily-paid employees:


The following factors and formula may be used in
computing the EEMR of different groups of daily-paid
employees for purposes of entitlement to minimum
wages and allied benefits under existing laws.

1. For those who are required to work everyday,


including Sundays or rest days, special days, and
regular holidays

Applicable Daily Rate x 392.50 = EEMR


12

where 392.50 days/year = 299 ordinary working


days
22 eleven regular holidays x
200%
67.60 52 rest days x 130%
3.90 three (3) special days x 130%
392.50 Total equivalent number of
days in a year

2. For those who do not work and are not considered


paid on Sundays or rest days
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Applicable Daily Rate x 313 = EEMR


12

where 313 days/year = 299 ordinary working days


11 regular holidays
3 special days (if considered paid; if
actually worked, this is equivalent to
3.9 days)
313 Total equivalent number of days in a
year

3. For those who do not work and are not considered


paid on Saturdays and Sundays or rest days

Applicable Daily Rate x 261 = EEMR


12

where 262 days/year = 247 ordinary working days


11 regular holidays
3 special days (if considered paid; if
actually
worked, this is equivalent to 3.9
days)
261 Total equivalent number of days in a
year